As we end the year 2023 it’s always nice to get a little perspective, versus the day to day, news and media cycle we all face. Here’s the Taos Residential market update.
Like others, we have started to see a shift back to pre pandemic levels of total gross sales. Sales will end this year just over $300M, but will not be the $400M plus levels we saw in 2021 and 2022. The frenzied pace could not continue given the shift in quantitative easing, and the adjustment in interest rates, starting in early 2023.
While Residential volume fell off to just about 600 sales this year, versus an average of 850 sales for the years ’20 through ’22, inventory of quality listings continued to decline in Taos. So, while demand fell off as the year progressed, the scarcity of product continued to push pricing higher. The average residential sale price in Taos in 2023 was $535,000, up only 3% from the previous year, but 14% higher than 2021, and an astounding 41% over the average sales price of $380,000 in 2020.
Of course, it is hard to say how 2024 will go. The recent slowing and pricing adjustments have helped, but demand continues to be the key factor for pricing. While stabilizing slightly, we are still priced well into the range of mid $300’s per square foot for existing product, and often over $400 psf for higher quality product or smaller floor plans. Interest Rates are the highest they have been in many years, which could suggest a slight adjustment downward at some point, as the FED has indicated Pricing has been reactionary but only to a degree this past year, and adjustments may have to continue into next year to achieve a sale.
The strategy for negotiations is and always will be, on a case-by-case basis. How a Seller prices property, or a Buyer negotiates terms, is still based on local knowledge. While information is easily gleened from a source, there is no real substitute for local knowledge and experience. Negotiating without professional help or the right information can be a minefield. Navigating a home sale, which is often the largest single asset in a personal portfolio, can be tricky. Like new Ski terrain, or an unfamiliar boat harbor- something may look easy, but why risk your well-earned resources, when you can avoid that with the help of a professional. With any important transaction on this level there is nothing that beats local knowledge and extensive experience. At Taos Properties we can provide guidance and care, so the process is executed as planned. It’s not always a perfect outcome, but with no process, outcome can be less than certain.
Call us to discuss the market and let us help you find out why Taos, still has the magic!
Lisa & John Cancro
Owners/Qualifying Brokers
Taos Properties Real Estate Investments, Inc.
205 Ranchitos Road
Taos, NM 87571